Who conducts cartel investigations on the energy market?

The market investigation on the energy market is conducted by the commission — at the request of the Government, the ministry, the Competition and Consumer Protection Agency, the Public Defender, an injured participant, or on its own initiative. The general cartel investigation regime is defined by competition legislation.

How long does an energy market investigation last?

The time limit is 7 months from the day of the commission's decision to conduct the investigation, and where there is a substantiated reasonable necessity the commission may extend it by not more than 4 months.

When does a concentration require prior notification?

When the value of assets or annual turnover of the participating regulated enterprises exceeds the threshold established by a normative act of the commission. A concentration creating or strengthening dominance is presumed restrictive unless the enterprise proves otherwise.

Cartel Investigations in Tbilisi, Georgia

Q: What measures can the commission take as a result?

The investigation ends with a decision which may include revocation of a license, a fine, market opening incentive measures, an application to competent authorities, and a temporary prohibition of participation in the energy market.

Cartel Investigations in Georgia — the Real Legal Picture

It is best to state clearly at the outset: the general rules of cartel investigation are defined by Georgian competition legislation and enforced by the Competition and Consumer Protection Agency; this page rests on the chapters of the Law on Electricity and Water Supply that regulate competition on the energy market. Sectoral oversight of the energy market relies precisely on the instruments permitted by that law — market investigation, the assessment of significant influence and concentration control.

If you are affected by cartel behaviour on the energy market — price fixing, market sharing or the restriction of a competitor — your legal route is twofold: the general competition claims and the sectoral mechanisms established by the energy law, which we examine in detail below.

The Energy Market Investigation — Who, When and How

Under the law, the commission ensures the creation of appropriate conditions for the existence and development of effective competition on the energy market and the timely detection and elimination of restrictive practices. To these ends the commission supervises the market and, where necessary, conducts an investigation of the energy market: at the request of the Government of Georgia, the ministry, the Competition and Consumer Protection Agency or the Public Defender of consumers' interests; at the request of a market participant which suffers direct property damage as a result of a restrictive practice and has evidence confirming it; or on its own initiative.

The investigation covers the definition of the market by services, product supply and or geographical areas; the analysis of the effectiveness of competition and the assessment of concentration data, including the market share of each enterprise and the level of competition between several enterprises; information on persons with significant influence on the market; and conclusions with a decision or recommendation on regulatory measures. The investigation is conducted in accordance with the market monitoring rules approved by the commission and its decision on conducting the investigation, in cooperation with competent state authorities and in line with the regulations of the Energy Community and best international practice.

Time Limits and Public Consultations

Procedural discipline is clearly established. The commission holds public consultations for the investigation, analyses the comments and recommendations received and publishes on its website their consolidated overview with explanations. The time limit for conducting the energy market investigation is 7 months, counted from the day of the commission's decision to conduct the investigation; where there is a duly substantiated reasonable necessity, the commission is entitled to extend this period by not more than 4 months.

The investigation ends with a decision of the commission responding to the components of the investigation. A decision or recommendation on regulatory measures may provide for: the revocation of an energy activity license; a fine; the application of market opening incentive measures; an application to the competent state authorities regarding the compliance of a market participant's activity; and the temporary prohibition of participation in the energy market for one or more participants. The results and the respective decision are submitted to the Government, the ministry and other competent state authorities and are published on the commission's website.